Because the Rhode Island Economic Development Corporation (EDC) did a pretty lousy job of keeping records during the whole 38 Studios $75 million loan guarantee deal, the agency charged with spurring economic growth in the state will be installing tracking software to keep tabs on its employees.
The new software will reportedly track interactions that occur between the agency and any businesses it reaches out to or has direct dealings with. According to the Providence Journal the software will cost the state $85,000. In addition to tracking interactions with businesses, the system will allow for "information on demand" and will create and maintain a "reliable database" of companies that the agency is working with or talking to.
The EDC has hired a Maryland consulting firm to implement the new software system. Particular details on this new system were not disclosed as of this writing.
The software is in response to the agency's failure to maintain a proper paper trail in its dealings with former Red Sox pitcher Curt Schilling and his company 38 Studios. The state is suing Schilling, former 38 Studios executives and even some former members of the EDC. They are seeking to recoup money to pay down a debt related to a $75 million loan given to 38 Studios. The company defaulted on that loan and filed for bankruptcy in 2012. Since then the state has been busy seizing whatever assets it could from the company and Schilling. Oral arguments began in the case against Schilling this week. The state owes an estimated $100 – $110 million related to the failed 38 Studios deal…
Source: San Francisco Gate